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Allot Communications Ltd (ALLT)
NASDAQ:ALLT
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Allot
(NASDAQ:ALLT)
Rating:53Neutral
Price Target:―
Allot (ALLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$354.85M
Dividend YieldN/A
Average Volume (3M)381.18K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-1.03%
EPS Growth90.81%
CountryUS
Employees523
SectorTechnology
Sector Strength82
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.02
Shares Outstanding39,692,814
10 Day Avg. Volume295,045
30 Day Avg. Volume381,183
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.25
Price to Sales (P/S)0.00
P/FCF Ratio-3.33
Enterprise Value/Market Cap0.45
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit2.51
Enterprise Value/Ebitda-1.67
Forecast
1Y Price Target
$13.00Price Target Upside45.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Allot Business Overview & Revenue Model
Company DescriptionAllot (ALLT) is a leading global provider of innovative network intelligence and security solutions for service providers and enterprises. The company's core products and services include network traffic management, network security, and deep packet inspection (DPI) technologies. Allot's solutions empower its customers to optimize network performance, enhance user experience, and secure networks against cyber threats.
How the Company Makes MoneyAllot makes money primarily through the sale of its network intelligence and security solutions to telecommunications service providers and enterprises. The company's revenue model includes the sale of hardware, software licenses, and recurring revenue from maintenance and support contracts. Allot also generates revenue through its security-as-a-service offerings, which provide ongoing network protection and management. Key revenue streams include direct sales to telecom operators, ISPs, and large enterprises, as well as strategic partnerships and collaborations with technology vendors and service providers to integrate Allot's solutions into broader service offerings.
Allot Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 41.17%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive outlook with strong revenue growth, expanded partnerships, and new product launches. However, there are some uncertainties regarding the exact growth of SECaaS ARR, dependent on service provider marketing efforts.Q1-2025 Updates
Positive Updates
Revenue and SECaaS Growth
First quarter revenue increased by 6% year-over-year to $23.2 million. SECaaS contributed $5.1 million, up 49% year-over-year, comprising 22% of total revenue.
Partnership Expansion with Verizon
Allot expanded its partnership with Verizon Business, providing cybersecurity protection to over 30 million mobile subscribers. Verizon became the largest contributor to SECaaS revenues in Q1.
Profitability Achieved
Allot reported a non-GAAP net income of $0.8 million, compared to a loss in the same quarter last year, with a positive operating cash flow of $1.7 million.
New Product Launches
Launched the OffNetSecure solution at RSA in San Francisco, expanding cybersecurity protection to off-network customers. Received positive feedback and strong interest.
Partnership Expansion with Vodafone
Continued growth in SECaaS adoption with Vodafone and potential expansions into more regions.
Smart Product Pipeline Growth
Increased demand for smart products, with a strong pipeline including multi-million and eight-figure deals, driven by the new Tera III platform.
Negative Updates
Uncertainties in SECaaS ARR Growth
While the company expects SECaaS ARR to grow around 50% or more, there are uncertainties due to reliance on service providers' marketing efforts.
Dependency on Service Providers
Significant reliance on service providers like Verizon and Vodafone for SECaaS revenue growth, which may pose risks if marketing and adoption do not meet expectations.
Company Guidance
During Allot's first quarter 2025 results conference call, the company highlighted several key metrics showcasing its strong performance and strategic direction. Allot reported a 6% year-over-year revenue increase, reaching $23.2 million, with the Security as a Service (SECaaS) solution playing a pivotal role by contributing 22% or $5.1 million to the quarterly revenue, up 49% from the previous year. The SECaaS annual recurring revenue (ARR) stood at $21.2 million, marking a 55% year-over-year increase. The company achieved a non-GAAP gross margin of 70.4% and reported a non-GAAP net income of $0.8 million, contrasting with a loss in the same quarter last year. Additionally, Allot maintained a positive operating cash flow of $1.7 million, boosting its cash position to over $60 million by the end of the quarter. These results were attributed to the successful execution of Allot's security-first strategy, partnerships with major telcos like Verizon and Vodafone, and the launch of new products, such as OffNetSecure. Looking ahead, Allot projects a SECaaS revenue and ARR growth of around 50% or more for the full year 2025, emphasizing its optimism about future profitability and market opportunities.Allot Financial Statement Overview
Summary
Allot is experiencing challenges in achieving profitability with declining revenues and negative net profit margins. However, improvements in cash flow and gross profit margins offer some positive signals. The balance sheet shows manageable but increasing leverage, and the overall financial health requires a focus on cost management and revenue growth.Income Statement
Allot's revenue decreased by 1.03% from 2023 to 2024, and the company has been facing a declining trend since 2021. Gross Profit Margin improved to 69.1% in 2024 from 56.56% in 2023, yet the company remains unprofitable with a negative Net Profit Margin of -6.37% in 2024. The EBIT and EBITDA margins improved but are still negative, indicating operational challenges.45
Neutral
Balance Sheet
The debt-to-equity ratio increased slightly to 0.93 in 2024 from 0.84 in 2023, showing a manageable but rising leverage level. The equity ratio decreased to 35.66% in 2024, indicating lower asset financing through equity. Return on Equity remained negative due to consistent net losses, which is concerning for shareholder returns.55
Neutral
Cash Flow
Allot's cash flow improved in 2024, with a positive Operating Cash Flow of $4.83M compared to negative in 2023. Free Cash Flow also turned positive at $2.71M in 2024, reflecting better cash management. However, the Free Cash Flow to Net Income ratio remains weak due to continuing net losses.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 92.19M | 93.15M | 122.74M | 145.60M | 135.92M | Gross Profit |
| 63.69M | 52.69M | 82.91M | 101.05M | 95.84M | EBIT |
| -6.01M | -64.94M | -32.27M | -13.53M | -9.03M | EBITDA |
| 2.12M | -55.13M | -22.75M | -7.95M | -2.86M | Net Income Common Stockholders |
| -5.87M | -62.80M | -32.03M | -15.04M | -9.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 57.86M | 53.05M | 85.35M | 83.97M | 98.00M | Total Assets |
| 139.64M | 138.16M | 212.95M | 203.41M | 201.60M | Total Debt |
| 46.34M | 41.93M | 44.70M | 8.25M | 4.65M | Net Debt |
| 30.20M | 27.74M | 32.40M | -3.46M | -18.95M | Total Liabilities |
| 89.83M | 88.40M | 110.98M | 77.41M | 71.45M | Stockholders Equity |
| 49.81M | 49.76M | 101.97M | 126.01M | 130.15M |
| Cash Flow | Free Cash Flow | |||
| 2.71M | -32.23M | -38.21M | -16.01M | -19.81M | Operating Cash Flow |
| 4.83M | -29.74M | -32.56M | -8.37M | -12.22M | Investing Cash Flow |
| -2.88M | 31.63M | -6.51M | -6.32M | 17.06M | Financing Cash Flow |
| 1.00K | 0.00 | 39.66M | 2.81M | 1.83M |
Allot Technical Analysis
Positive
8.95
Price Trends
6.81
Positive
6.92
Positive
5.49
Positive
Market Momentum
0.58
Positive
64.16
Neutral
79.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Positive. The current price of 8.95 is above the 20-day moving average (MA) of 8.39, above the 50-day MA of 6.81, and above the 200-day MA of 5.49, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLT.
Allot Risk Analysis
Allot disclosed 44 risk factors in its most recent earnings report. Allot reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.15B | 24.60 | 5.32% | ― | -2.09% | 76.96% | |
74 Outperform | $1.32B | 27.43 | 24.36% | 1.31% | 4.90% | 9.91% | |
73 Outperform | $5.41B | 66.00 | 10.13% | ― | 19.46% | 16.20% | |
70 Outperform | $4.39B | ― | -0.71% | ― | 34.37% | 95.80% | |
62 Neutral | $11.90B | 10.64 | -7.50% | 2.90% | 7.41% | -8.19% | |
60 Neutral | $8.29B | ― | -34.18% | ― | 24.11% | 21.87% | |
53 Neutral | $354.85M | ― | -7.51% | ― | -1.03% | 90.81% |
* Technology Sector Average
Performance Comparison
ALLT
Allot
8.70
6.57
308.45%
SPSC
SPS Commerce
144.50
-43.37
-23.09%
VRNT
Verint Systems
19.18
-18.05
-48.48%
ATEN
A10 Networks
18.08
4.18
30.07%
CFLT
Confluent
24.10
-3.83
-13.71%
RELY
Remitly Global
19.86
6.77
51.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.